Michigan farmland values rise despite lagging economy

Michigan’s farmers have an advantage over many other property owners in the state: Their land is rising in value.

The Federal Reserve Bank of Chicago says farmland values in Michigan jumped by 16 percent over the past year.

Jim Hilker is a marketing economist at Michigan State University.

He said corn, wheat and soybean prices are up and that’s boosting farmland prices.

But Hilker also said not a lot of farmland is trading hands because it stays in families.

"If that land comes up for sale, it may not come up for sale for another 30 years -- another person's career," Hilker said. "So if it's land near you, you overpay for it in one sense. You have other land that can help you pay for it and it's only going to be there one time."

Hilker said farmland with good soil in the Thumb and near Toledo is very marketable right now.